Correlation Between SC Asset and Better World
Can any of the company-specific risk be diversified away by investing in both SC Asset and Better World at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SC Asset and Better World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SC Asset and Better World Green, you can compare the effects of market volatilities on SC Asset and Better World and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SC Asset with a short position of Better World. Check out your portfolio center. Please also check ongoing floating volatility patterns of SC Asset and Better World.
Diversification Opportunities for SC Asset and Better World
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SC Asset and Better is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SC Asset and Better World Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Better World Green and SC Asset is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SC Asset are associated (or correlated) with Better World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Better World Green has no effect on the direction of SC Asset i.e., SC Asset and Better World go up and down completely randomly.
Pair Corralation between SC Asset and Better World
Assuming the 90 days horizon SC Asset is expected to generate 0.31 times more return on investment than Better World. However, SC Asset is 3.25 times less risky than Better World. It trades about 0.0 of its potential returns per unit of risk. Better World Green is currently generating about -0.02 per unit of risk. If you would invest 296.00 in SC Asset on August 29, 2024 and sell it today you would earn a total of 0.00 from holding SC Asset or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SC Asset vs. Better World Green
Performance |
| Timeline |
| SC Asset |
| Better World Green |
SC Asset and Better World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SC Asset and Better World
The main advantage of trading using opposite SC Asset and Better World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SC Asset position performs unexpectedly, Better World can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Better World will offset losses from the drop in Better World's long position.| SC Asset vs. Eastern Star Real | SC Asset vs. Bangkok Land Public | SC Asset vs. Ananda Development Public | SC Asset vs. Better World Green |
| Better World vs. Beauty Community Public | Better World vs. Demco Public | Better World vs. Asia Aviation Public | Better World vs. CK Power Public |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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